Bithumb’s No-Trading-Fee Policy Proves Effective in Boosting User Engagement

Oman’s Regulator Invites Feedback on Virtual Asset FrameworkProgressing toward the establishment of its own virtual asset regulations, the Sultanate of Oman is embarking on a significant step by soliciting public feedback on its comprehensive framework.The framework, which governs digital assets, is being developed by the Capital Market Authority (CMA) of Oman. The move reflects the country’s commitment to creating a robust regulatory environment for the virtual asset sector.The CMA’s consultation paper, released last week, outlines the agency’s objectives in crafting this regulatory framework. It aims to provide a viable financing and investment avenue for issuers and investors while also addressing the inherent risks associated with the virtual asset class. Central to this initiative is the integration of business requirements and measures to prevent market abuse.Photo by Niklas Weiss on Unsplash26 key questionsAt the heart of this regulatory endeavor are 26 crucial questions presented to industry stakeholders. Their valuable input will help shape the framework’s core components. These include provisions related to regulatory standards and licensing prerequisites for virtual asset service providers (VASPs), corporate governance, risk management, and the issuance of virtual assets.The proposed framework, as disclosed in the consultation paper, encompasses a spectrum of digital assets. This spans utility tokens, security tokens, fiat-backed and asset-backed stablecoins, and other currencies adhering to the Financial Action Task Force’s (FATF) definition of virtual assets. However, a noteworthy proposal that has garnered attention is the potential prohibition of privacy coins issuance, a decision pending public feedback.Aiming to reinforce accountability and stability, the CMA may mandate that VASPs establish a local presence in Oman through legally recognized entities and physical offices. Additionally, minimum capital requirements could be imposed on these entities. The envisaged framework may also stipulate that virtual asset firms maintain a low percentage of assets in hot wallets, conduct audits of safeguarded assets, and provide evidence of reserves.Shaping regulation through feedbackWith the consultation phase set to conclude on August 17, the public’s valuable feedback will shape the direction of Oman’s virtual asset regulations. The most salient viewpoints may find their place on the CMA’s official website. Following this consultation period, the CMA will proceed to finalize the regulatory framework.Although the public announcement regarding the launch of a regulatory framework was made on February 14, Oman’s journey toward regulating the virtual asset industry began well before. In November 2020, the National Committee for Combating Money Laundering and Terrorist Financing initiated discussions on forming a task force.Comprising officials from the CMA and the Central Bank of Oman, the task force explored whether to permit or prohibit virtual asset activities. Subsequently, in December 2022, consultants were engaged to facilitate the establishment of this new regulatory landscape.The United Arab Emirates, and in particular, the individual emirates of Dubai and Abu Dhabi, have led the way in the Middle East in progressing a workable framework for the digital asset industry. Oman’s proactive approach is following the example set by its regional peer.Shaping its virtual asset framework underlines its desire to foster innovation while ensuring the integrity of its financial landscape. Its latest effort in seeking public feedback is a positive development that should assist it in arriving at a progressive framework.

Silence From Multichain’s Chinese Developers Stokes FearA prolonged silence from the project leadership behind Multichain, a cross-chain routing network, is causing growing concern among the users of the cross-chain protocol. The network currently holds $1.5 billion in total value locked (TVL).The protocol has experienced five days of stuck transactions, and multiple cross-chain bridge pathways, including Kava, zkSync, and Polygon zkEVM are still offline. Initially, the project’s China-based team attributed the issues to an upgrade that was being fixed. That explanation was changed recently to an ambiguous “force majeure,” leaving users with more questions than answers.Photo by Santiago Lacarta on UnsplashPossible arrests in ChinaAdding to the uncertainty are rumors circulating on Twitter that the core leadership team may have been arrested in China. Although the rumors remain unconfirmed, they have contributed to the growing sense of unease within the community. DJ Qian, one of the co-founders of Multichain who is no longer involved with the project, took to Twitter to share his attempts to seek clarification. Qian mentioned reaching out to Multichain CEO Zhaojun and founding partner Xu Guochang for technical assistance. When asked about Zhaojun’s availability, Qian stated that he was “not available yet.”Users and investors eagerly await updates and clarity from Multichain’s leadership team. However, the team’s lack of communication extends across various forms of social media. In group Telegram messages with the Multichain team, there have been no responses from Zhaojun, and direct messages through the same app have gone unanswered as well. This silence has left the community members puzzled, with little information to rely on.$MULTI price plummetsMeanwhile, the price of Multichain’s native token, $MULTI, has continued to decline. It currently stands at $4.37, representing a 20% decrease over the past 24 hours. The lack of communication and uncertainty surrounding the project have likely contributed to this downward trend in token price. Over the course of the past seven days, the token has decreased in price by 45%.In response to the situation, layer 1 blockchain project Conflux Network has taken precautionary measures by suspending Multichain’s co-mint privileges. This move prevents Multichain from minting tokens on the Conflux blockchain. The Conflux Network has also assured users that it will work with them in case any losses arise due to the ongoing issues.Flight to safetyOther projects and individuals have also reacted to the silence from Multichain’s team. Hong Kong-based HashKey Group, a crypto investment firm, has transferred $250,000 to crypto exchange Gate.io as a precautionary measure. Tron founder Justin Sun has withdrawn 470,000 of the $USDD stablecoin from the Multichain protocol. These actions reflect a growing concern among stakeholders, representing their efforts to mitigate potential risks associated with the uncertainty surrounding Multichain.Furthermore, the Fantom Foundation has withdrawn $2.4 million in liquidity of the protocol’s native $MULTI tokens from the decentralized exchange SushiSwap. It later tweeted out an update stating that the Fantom-Multichain bridge was operating as normal. These withdrawals signal a loss of confidence in Multichain and its native token, as stakeholders seek to protect their investments.As the silence persists, users and investors remain anxious for updates and clarifications from Multichain’s leadership team. The lack of communication and the circulating rumors have cast a shadow of uncertainty over the project, leaving stakeholders in a state of limbo.

Taiwan Crypto Trader Strikes it Lucky in Tax Receipt LotteryA trader on Taiwan’s MaiCoin Max crypto exchange has struck it rich in an unexpected way, winning a grand prize of 10 million NTD (approximately $310,000) in the country’s monthly national tax receipt lottery.Photo by Nick Fewings on UnsplashFrom 6 cents to $300KWhat makes this story, which was reported by CoinDesk on Friday, even more surprising is that the trader had paid a mere 2 NTD (equivalent to $0.06) in fees on the exchange as they engaged in relatively small trades.The lucky individual, who chose to remain anonymous, didn’t earn this windfall through traditional trading profits or by accumulating tokens. Instead, their fortune came from Taiwan’s unique approach to tax compliance.For crypto exchanges like MaiCoin, every trade conducted on their platform technically counts as a taxable event. This means that active traders can amass numerous virtual “lottery tickets” each month through their trading activities and transaction fees.Uniform invoice lotteryTaiwan introduced its tax receipt lottery system, known as the uniform invoice lottery, back in the 1950s as an innovative method to encourage tax compliance among consumers. While tax authorities worldwide struggle to capture revenue from cryptocurrency holders, Taiwan’s approach allows them to indirectly benefit from the earnings generated on crypto exchanges.For every transaction made by an individual, whether that should occur on a crypto exchange or elsewhere, the individual is issued with a tax receipt. An electronic copy is also registered with Taiwan’s tax authority. Essentially, every receipt then becomes a lottery ticket as the tax authority then runs a draw on an ongoing basis where taxpayers can earn cash prizes.This particular win involving a Taiwanese crypto trader has drawn attention from the broader public. Paul Huang, a Research Fellow at the Taiwanese Public Opinion Foundation, took to X (formerly Twitter) on the subject, stating:”Who says retail users can’t profit from trading cryptos? Taiwan’s largest crypto exchange @MAX_exch announced some user made a tiny trade that paid $2 NTD ($0.06 USD) in fee on platform, the tax receipt ended up winning 10mil ($310k USD) in Taiwan govt’s invoice lottery!”The recent $310,000 jackpot represents the largest prize ever won by a crypto trader through this lottery. Nevertheless, Taiwan’s tax receipt lottery typically produces smaller windfalls, with the country collecting over $7 billion in sales tax revenue in 2021, and a significant proportion paid out in lottery winnings.Critics argue that this system may not be the most efficient way to boost tax compliance, but Taiwan maintains one of the world’s most effective tax regimes, consistently generating impressive revenue relative to its GDP. Additionally, stories of remarkable lottery jackpots serve as excellent public relations for the scheme.There’s little doubt that cryptocurrencies have brought about significant challenges for tax authorities worldwide. In this particular instance, Taiwan’s tax receipt lottery stands as a unique and intriguing approach to fostering compliance while occasionally making crypto traders unexpectedly wealthy.